Someone Explain This Auto Loan Nonsense to Me

"Shane Moore" (snakesm13)
07/19/2017 at 21:56 • Filed to: None

So I have located the SS I want at two different dealerships, one with sunroof and one without.

I apply for a loan with Dealership A in advance since I’ve had good luck with rates in the past through dealerships. They come back with the best they can do: 3.89% 60 for 60 months (even though I requested 48)

Certainly doesn’t sound right when I got 2.65% on a USED truck for more money financed back in January.

So I go directly to chase to check what I can get through them. Long story short Dealership A already applied for a loan in my name through chase and they can’t accept a 2nd application unless I identify a different participating dealership.

So I use Dealership B and it immediately comes back at 2.02% for 48mo or 2.04% for 60mo.

I am going to dealership A first thing in the morning to discuss this with them and if they won’t play ball, I can live without a sunroof if all the other numbers match.

Thoughts?

DISCUSSION (23)

DipodomysDeserti > Shane Moore
07/19/2017 at 22:06

Banks sometimes give incentives to dealerships that secure higher rate loans. They also could have used different credit reporting agencies thus giving you a bit different credit rating. If the cars are the same price then you just have to figure hiw mich a sunroof is worth to you.

Aremmes > Shane Moore
07/19/2017 at 22:08

Stealership A might be getting kickbacks from Chase for closing higher-interest loans.

Tekamul > Shane Moore
07/19/2017 at 22:11

The dealer is getting that 1.8% right back in their pocket.

You should probably tell them to pound sand.

Shane Moore > Aremmes
07/19/2017 at 22:13

So my question would be if I push the dealership hard enough would they forgo the kickback and be able to lower the rate down or is it stuck where it’s at?

Shane Moore > DipodomysDeserti
07/19/2017 at 22:15

So my question would be if I push the dealership hard enough would they forgo the kickback and be able to lower the rate down or is it stuck where it’s at?

I would prefer no sunroof, wife and resell says get it. But the better deal is with sunroof dealership trade offer/final price outside of loan rate.

Shane Moore > Tekamul
07/19/2017 at 22:16

So my question would be if I push the dealership hard enough would they forgo the kickback and be able to lower the rate down or is it stuck where it’s at?

Tekamul > Shane Moore
07/19/2017 at 22:20

It’s not stuck. They are not locked into a single agreement or financer.

If you have confidence in your credit rating, get a loan elsewhere, that will disclose rates based on credit score/term/model year prior to running your credit. Any reputible financer will do that.

Also, make sure you get a copy of the credit report they received, as you are entitled to a copy by law. That way you’ll know for sure.

Supreme Chancellor and Glorious Leader SaveTheIntegras > Shane Moore
07/19/2017 at 22:29

To answer your response, the dealership is not stuck at the rate given to them. Tell them to fuck off, because like everyone else said, that 1.8% is going right to their pocket.

You can try to play hardball, but it won’t work unless that dealer NEEDS to move units

Sovande > Shane Moore
07/19/2017 at 22:31

Since you aren’t stuck getting dealer financing, can’t you just secure the loan through a different lender? Or just tell the dealership what you have found and see what they say. If they won’t work with you tell them to kick rocks.

Or bite the bullet and eat the additional cost and get the sunroof. What is the life of loan cost differential for the higher rate?

merged-5876237249235911857-hrw8uc > Shane Moore
07/19/2017 at 22:33

Have you checked credit unions as well. We’ve got great rates on past purchases via local credit unions. I always have a loan all lined up before I go into the dealership, then if they can beat it, I go with them. Out of four vehicles only once has the dealer done better. If you know what you can get, use that as leverage and give them an ultimatum of walk. The sunroof isn’t a make or break deal, at least it shouldn’t be.

iSureWilll > Shane Moore
07/19/2017 at 22:36

You’re not stuck. As others have said, go back to stealership A with a printed copy of your 2.02% approval for 48 mo, and tell them that’s what you need to sign the papers today. If they can’t do it, another dealer across town will give you that rate and you’ll get basically the same car. They’ll most likely move on their 3.89% with something close to what you need. They want to make a sale.

Shane Moore > Sovande
07/19/2017 at 22:36

I could but the reason for trying to secure this before I got to the dealership was I’ve got a 7hr+ ride back home so didn’t want to be stuck at the dealership. I was able to make the trip 2 days earlier or I would’ve had more time.

At those rates it’s close to $1700 difference towards interest alone. Not so significant it’s a deal breaker but it feels like throwing away money when I’ve proven I should be getting much lower. 2.02% at chase is the lowest possible they advertise.

Shane Moore > Supreme Chancellor and Glorious Leader SaveTheIntegras
07/19/2017 at 22:37

Thanks, all I can do is try.

Shane Moore > iSureWilll
07/19/2017 at 22:39

Whew, a positive response! Haha unfortunately the other dealer is 3 hours away, it is a pretty specific vehicle but I’m not afraid to drive.

Shane Moore > merged-5876237249235911857-hrw8uc
07/19/2017 at 22:42

Sunroof isn’t a make or break but this dealership does have a better final price when factoring in what they are offering for trade in and price discount. Thanks for the response and if the other dealership can get a lower rate but not match price then it is basically a wash anyway.

Sovande > Shane Moore
07/19/2017 at 22:45

Gotcha. Wish I could offer more help!

merged-5876237249235911857-hrw8uc > Shane Moore
07/19/2017 at 22:54

Gotcha. Can’t hurt to check local CUs though. Even if you’re not a member, you can normally open an account if necessary. Might be worth a look.

Shane Moore > merged-5876237249235911857-hrw8uc
07/19/2017 at 23:07

Thanks! Will give that a look.

Nibbles > Shane Moore
07/20/2017 at 00:29

Dunno if they still do it but, way back when I used to sell, we’d get approval for x apr but first go to the customer with a higher number. If they signed, then we were “... very pleased to tell [them] that a lower apr was approved!” The next day, have em come back in and re-sign. *some* reps would tie people to the higher apr to get bonus points from management.

DipodomysDeserti > Shane Moore
07/20/2017 at 01:13

Maybe, but those finance guys can be real assholes sometimes and they usually won’t show their hand as far as financing bonuses go. Sometimes they’ll cut a deal where if you buy one of those bs warranties they’ll drop the rate. You end up paying the same but at least you get somethig for it.

105 HP of fury > Shane Moore
07/20/2017 at 08:40

You said in another post that it’s a $1700 difference between the two once financing is calculated. I’d say it’s worth the drive if dealer A won’t budget. If you are willing to walk, that gives you leverage. Use it.

ivnic8 > Shane Moore
07/20/2017 at 11:34

Sunroofs suck - go to Dealership B and avoid the headache of the sunroof and Dealership A.

CaptDale - is secretly British > Shane Moore
07/20/2017 at 13:01

No sunroof will be better in the long run. Especially when GM doesn’t make seals for it in five years when it dries out and leaks.